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balou2
4th July 2008, 19:26
I'm curious to see opinions on what size PMs people recommend in personal collections. I'm not asking, nor will discuss, personal holdings, but the idea of storage, and using PM when SHTF is a topic I've wondered about. Obviously, having ONLY 1000oz bars will do little good when purchasing food or whatever...

It seems like having nice mix of sizes and/or denominations is the way to go - i.e. a mixture of 1000 or 100oz bars, maybe a few 5 and 10 oz bars (or any of the odd sizes that exist), 1 oz rounds etc....

Is there a "rule of thumb" that anyone uses or has heard of? When you read the gold forums, the contributors always tout how happy they are to have a small ounce of gold, compared to 50 oz of silver. I imagine this is largely for storage and/or investment purposes, but again...if the SHTF, an ounce of gold doesn't allow the holder much freedom for smaller usage.

For the sake of this discussion, I have not included 40% or 90%, but feel free to chime in if you feel the point is valid.

SilverWhore
4th July 2008, 20:09
You pretty much have it right as far as I'm concerned. If you don't have much silver, then it should be in somewhat smaller denominations rather than all in one bar. If you can afford several 100 ozt. bars or even 1000 ozt. bars then what would it harm you to break up just one of those bars into 90% coinage and 1-10 ozt. rounds and bars? Even diversify a bit and have some 1/8th, 1/4 and/or 1/2 ozt. gold coins which would give you big value in a small space. It only makes sense really. Just diversify your PM holdings a bit by converting a big bar or even a few depending on how many you have. Thats my two cents anyway.

Scrap Metal
5th July 2008, 06:16
I am a small buyer, so I only buy ounces and 90%. I can afford 10 ounce bars, but I do not think that they will be as handy as one ounce pieces. I have a mix of 90% coins and .999 ounces.

clr8ter
5th July 2008, 07:59
I have no problem with the storage size of silver as opposed to gold. I too think that the smaller sizes are better. I have 1 & 10 ounce sizes & Some 90%, but only 4 of them are 10 ounce bars. Although, if you think about it, if we are using silver as currency, why couldn't you take a 1000 oz. somewhere and get change, much like using a $100 bill to buy a coffee at Dunkin Donuts?

SilverWhore
5th July 2008, 12:46
I'm not trying to be a damper on things, but I seriously doubt we will ever truly be using silver or gold as a currency. I don't think people will go to the super market and pay with one ounce rounds. Most likely, we will just be selling it off to metal dealers piecemeal to redeem its value in toilet paper..ehem..I mean FRN's.

argentos
5th July 2008, 19:00
...I don't think people will go to the super market and pay with one ounce rounds. ....

That might be because, by the time people are trading precious metals and gems for food, there will be no fuel to put in the tanks of the lorries that service the supermarkets' distribution systems and so the supermarkets will have closed down.

pkrebaum
5th July 2008, 20:48
At least one large PM dealer claims that 100 Oz. name-brand bars are the largest size which will be universally accepted without an assay charge.

The difference in spot price between 100 and 1000 Oz. is negligable, and 100 Oz. is the largest size which is readily portable. Remember, 1000 troy ounces is almost 70 pounds.... the equivalent of 2 five-gallon buckets of water. The average knapsack will only hold about 25 lbs. comfortably, even then the bars should be wrapped in towels to prevent the corners from ripping thru the nylon. Lastly, your bank might not have readily available a safe deposit box big enough for a 1000 Oz. bar. --P.S. I only weigh about 140 lbs. so 70 lbs. would be half my body-weight....most non-athletes would consider over 25% of their body weight to be uncomfortable to lug around without looking like a dufus. Lastly, a 1000 oz. bar is hard to conceal and worth too much....you might get robbed in the parking lot of your coin shop.

As for allocation, I use a rough "30%" rule....30% of your holdings should be in smaller denominations. So if I were, for example, to purchase 1,300 Oz. of Silver I'd get ten 100 Oz. bars, ten 10 Oz., twenty 5 Oz. and 100 as 1 Oz. legal-tender coins, either SAEs or MLs. This seems to me to be a good compromise between paying too much over spot and ready "spendability".

balou2
5th July 2008, 20:58
At least one large PM dealer claims that 100 Oz. name-brand bars are the largest size which will be universally accepted without an assay charge.

The difference in spot price between 100 and 1000 Oz. is negligable, and 100 Oz. is the largest size which is readily portable. Remember, 1000 troy ounces is almost 70 pounds.... the equivalent of 2 five-gallon buckets of water. The average knapsack will only hold about 25 lbs. comfortably, even then the bars should be wrapped in towels to prevent the corners from ripping thru the nylon. Lastly, your bank might not have readily available a safe deposit box big enough for a 1000 Oz. bar. --P.S. I only weigh about 140 lbs. so 70 lbs. would be half my body-weight....most non-athletes would consider over 25% of their body weight to be uncomfortable to lug around without looking like a dufus. Lastly, a 1000 oz. bar is hard to conceal and worth too much....you might get robbed in the parking lot of your coin shop.

As for allocation, I use a rough "30%" rule....30% of your holdings should be in smaller denominations. So if I were, for example, to purchase 1,300 Oz. of Silver I'd get ten 100 Oz. bars, ten 10 Oz., twenty 5 Oz. and 100 as 1 Oz. legal-tender coins, either SAEs or MLs. This seems to me to be a good compromise between paying too much over spot and ready "spendability".

Good comments. I would not consider the 1000oz. size. As you mentioned, the difference in spot is negligible, whether for investment of SHTF, 1000oz bar may be a hindrance. I like your ROT breakdown, though I think for me personally, I would increase my smaller holdings, even if only minimally, as I think they will be more accessible for the masses to purchase. Thanks for your thoughts, as always.

Anyone else?

pkrebaum
5th July 2008, 21:51
I might increase my percentage of smaller denominations by exchanging 10 to 20% of my larger Silver bars for Gold, if there's a favorable dip in the Silver-Gold ratio. Right now I'm 95/5 in Ag/Au.... I kind of like the idea of having a bit more diversity even though Silver stands to gain more. Somewhere between 85/15 and 75/25 Ag/Au seems reasonable......And I'll stick with Gold legal-tender coins, one-half ounce or less. Gold packs so much value into such a small space that I don't see much point in bullion bars unless you're a millionaire.